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TDS reports first quarter 2020 results

04/30/2020
Continuing to provide outstanding communications services to our customers

CHICAGO, April 30, 2020 /PRNewswire/ --

As previously announced, TDS will hold a teleconference May 1, 2020, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com 

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,261 million for the first quarter of 2020, versus $1,257 million for the same period one year ago. Net income attributable to TDS shareholders and related diluted earnings per share were $69 million and $0.59, respectively, for the first quarter of 2020 compared to $59 million and $0.50, respectively, in the same period one year ago.

"The TDS Enterprise and its family of companies remain strong in this time of the COVID-19 pandemic and great economic uncertainty," said LeRoy T. Carlson, Jr., TDS President and CEO.  "We are continuing to provide critical communications and data services that our customers and communities, especially in underserved areas, depend on. U.S. Cellular and TDS Telecom have risen to meet the business challenges of this national health crisis, by putting people - our associates, their families and our customers - first, and by keeping our operations and networks performing at very high levels.

"U.S. Cellular continues to provide high-quality wireless connectivity. The majority of our stores remain open, with modified store hours, and safety measures including social distancing implemented. Most of our customer care center employees are now working from home, while still maintaining the exceptional service U.S. Cellular is known for.  U.S. Cellular is successfully meeting increased demands for capacity on its network, with both data and voice traffic increasing. Our network modernization program continues, adding capacity and speed, launching 5G services commercially, and preparing for remaining VoLTE deployments.  U.S. Cellular's financial results this quarter were solid, including a tax benefit resulting from the CARES Act, partially offset by an incremental allowance to cover anticipated higher levels of bad debt. There may be near-term impacts from the pandemic, including lower store traffic and customer growth. Our number one priority is to continue to adapt to meet the wireless needs of the communities and customers we serve. At the same time, we are planning for the return to a more stable future environment and continuing to execute on our strategic priorities.

"TDS Telecom is experiencing strong demand for wired broadband services as many customers work from home. At this time TDS Telecom is successfully meeting the significant demand for higher speeds as well as increased network capacity across its footprint. To keep customers and field service technicians safe, procedures have been implemented to minimize the amount of work technicians do within the home and we are using self-service and remote assistance techniques to complete both installs and repairs. TDS Telecom continues to move forward with fiber deployment in our out-of-territory expansion markets.

"At TDS, we have a good financial foundation. We continue to maintain a strong balance sheet with ample liquidity. We closely monitor leading indicators like customer receipts and accounts receivable aging. We have enhanced our liquidity position to provide near term capital spending."

2020 Estimated Results

TDS' current estimates of full-year 2020 results for U.S. Cellular and TDS Telecom are shown below. Such estimates represent management's view as of April 30, 2020 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results, especially in light of the uncertainty created by the COVID-19 pandemic.

2020 Estimated Results



U.S. Cellular

Previous

Current

(Dollars in millions)



Service revenues

$3,000-$3,100

Unchanged

Adjusted OIBDA1

$775-$900

$725-$850

Adjusted EBITDA1

$950-$1,075

$900-$1,025

Capital expenditures

$850-$950

Unchanged







TDS Telecom

Previous

Current

(Dollars in millions)



Total operating revenues

$950-$1,000

Unchanged

Adjusted OIBDA1

$280-$310

Unchanged

Adjusted EBITDA1

$290-$320

Unchanged

Capital expenditures

$300-$350

Unchanged

The following tables provide reconciliations of Net income to Adjusted OIBDA and Adjusted EBITDA for 2020 estimated results, actual results for the three months ended March 31, 2020, and actual results for the year ended December 31, 2019. In providing 2020 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.


2020 Estimated Results


U.S. Cellular


TDS Telecom

(Dollars in millions)




Net income (GAAP)

N/A


N/A

Add back:




Income tax expense

N/A


N/A

Income before income taxes (GAAP)

$80-$205


$80-$110

Add back:




Interest expense

110


Depreciation, amortization and accretion expense

690


210

EBITDA (Non-GAAP)1

$880-$1,005


$290-$320

Add back or deduct:




(Gain) loss on asset disposals, net

20


Adjusted EBITDA (Non-GAAP)1

$900-$1,025


$290-$320

Deduct:




Equity in earnings of unconsolidated entities

165


Interest and dividend income

10


10

Adjusted OIBDA (Non-GAAP)1

$725-$850


$280-$310

 


Actual Results


Three Months Ended
March 31, 2020


Year Ended
December 31, 2019


U.S.
Cellular


TDS
Telecom


U.S.
Cellular


TDS
Telecom

(Dollars in millions)








Net income (GAAP)

$

72



$

28



$

133



$

92


Add back:








Income tax expense

4



4



52



30


Income before income taxes (GAAP)

$

76



$

31



$

185



$

122


Add back:








Interest expense

24



(1)



110



(3)


Depreciation, amortization and accretion expense

177



52



702



200


EBITDA (Non-GAAP)1

$

277



$

82



$

997



$

320


Add back or deduct:








(Gain) loss on asset disposals, net

4





19



(7)


(Gain) loss on sale of business and other exit costs, net





(1)




Adjusted EBITDA (Non-GAAP)1

$

281



$

82



$

1,015



$

313


Deduct:








Equity in earnings of unconsolidated entities

45





166




Interest and dividend income

4



2



17



12


Other, net

1








Adjusted OIBDA (Non-GAAP)1

$

231



$

80



$

832



$

300



 Numbers may not foot due to rounding.



1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are non-recurring, infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS' operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, and gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for March 31, 2020, can be found on TDS' website at investors.tdsinc.com.

Conference Call Information
TDS will hold a conference call on May 1, 2020 at 9:00 a.m. Central Time.

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com.

About TDS
Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; cable and wireline broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, U.S. Cellular, TDS Telecom, BendBroadband and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed 9,400 people as of March 31, 2020.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:  All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to:  the impact, duration and severity of the COVID-19 pandemic; intense competition; the ability to execute TDS' business strategy; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and U.S. Cellular indebtedness or comply with the terms of debt covenants; impacts of any pending acquisitions/divestitures/exchanges of properties and/or licenses, including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transactions and the financial impacts of such transactions; the ability of the company to successfully manage and grow its markets; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings of TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; pending and future litigation; changes in income tax rates, laws, regulations or rulings; changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of wireless devices, or the mix of services and products offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by TDS to furnish this press release to the Securities and Exchange Commission, which are incorporated by reference herein.

The impact of the COVID-19 pandemic on TDS' business is uncertain, but depending on its duration and severity it could have a material adverse effect on TDS' business, financial condition or results of operations.

The impact of the recent global spread of COVID-19 on TDS' future operations is uncertain. Public health emergencies, such as COVID-19, pose the risk that TDS or its associates, agents, partners and suppliers may be unable to conduct business activities for an extended period of time and/or provide the level of service expected. TDS' ability to attract customers, maintain adequate supply chain and execute on its business strategies and initiatives could be negatively impacted by this outbreak. Additionally, COVID-19 has caused and could continue to cause increased unemployment, economic downturn and credit market deterioration, all of which could negatively impact TDS. The extent of the impact of COVID-19 on TDS' business, financial condition and results of operations will depend on future circumstances, including the severity of the disease, the duration of the outbreak, actions taken by governmental authorities and other possible direct and indirect consequences, all of which are uncertain and cannot be predicted.

For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
U.S. Cellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com
OneNeck IT Solutions: www.oneneck.com

United States Cellular Corporation

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

3/31/2020


12/31/2019


9/30/2019


6/30/2019


3/31/2019

Retail Connections










Postpaid










Total at end of period

4,359,000



4,383,000



4,395,000



4,414,000



4,440,000


Gross additions

132,000



170,000



163,000



137,000



137,000


Feature phones

2,000



2,000



3,000



5,000



4,000


Smartphones

88,000



128,000



121,000



97,000



98,000


Connected devices

42,000



40,000



39,000



35,000



35,000


Net additions (losses)

(26,000)



(12,000)



(19,000)



(26,000)



(32,000)


Feature phones

(10,000)



(11,000)



(11,000)



(10,000)



(13,000)


Smartphones

(10,000)



13,000



9,000



(1,000)



(1,000)


Connected devices

(6,000)



(14,000)



(17,000)



(15,000)



(18,000)


ARPU1

$

47.23



$

46.57



$

46.16



$

45.90



$

45.44


ARPA2

$

122.92



$

120.99



$

119.87



$

119.46



$

118.84


Churn rate3

1.21

%


1.38

%


1.38

%


1.23

%


1.26

%

Handsets

0.95

%


1.11

%


1.09

%


0.97

%


0.99

%

Connected devices

3.11

%


3.44

%


3.44

%


3.01

%


3.08

%

Prepaid










Total at end of period

494,000



506,000



510,000



500,000



503,000


Gross additions

57,000



63,000



70,000



61,000



61,000


Net additions (losses)

(12,000)



(3,000)



9,000



(2,000)



(13,000)


ARPU1

$

34.07



$

34.11



$

34.35



$

34.43



$

33.44


Churn rate3

4.67

%


4.40

%


4.03

%


4.20

%


4.92

%

Total connections at end of period4

4,903,000



4,941,000



4,957,000



4,967,000



4,995,000


Market penetration at end of period










Consolidated operating population

31,292,000



30,740,000



31,310,000



31,310,000



31,310,000


Consolidated operating penetration5

16

%


16

%


16

%


16

%


16

%

Capital expenditures (millions)

$

236



$

243



$

170



$

195



$

102


Total cell sites in service

6,629



6,578



6,554



6,535



6,506


Owned towers

4,184



4,166



4,123



4,116



4,106




1

Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:


Postpaid ARPU consists of total postpaid service revenues and postpaid connections.


Prepaid ARPU consists of total prepaid service revenues and prepaid connections.

2 

Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.

3 

Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.

4 

Includes reseller and other connections.

5 

Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total population of consolidated operating markets as estimated by Nielsen.

 

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

3/31/2020


12/31/2019


9/30/2019


6/30/2019


3/31/2019

TDS Telecom










Wireline










Residential connections










Voice1

259,100



262,100



266,100



269,000



271,100


Broadband2

242,700



241,300



242,200



240,200



236,100


Video3

59,000



58,500



57,300



56,200



54,300


Wireline residential connections

560,700



561,900



565,600



565,500



561,500












Total residential revenue per connection4

$

50.12



$

49.11



$

49.02



$

47.88



$

48.16












Commercial connections










Voice1

114,400



117,800



121,200



124,200



127,300


Broadband2

20,500



20,400



20,600



20,600



20,400


managedIP5

118,300



121,200



124,500



128,300



132,000


Video3

100



100



400



400



400


Wireline commercial connections

253,400



259,600



266,600



273,500



280,100












Total Wireline connections

814,200



821,500



832,300



839,000



841,500












Cable










Cable residential and commercial connections










Broadband6

196,800



193,500



174,900



172,600



171,100


Video7

105,100



106,600



98,000



100,300



101,400


Voice8

68,900



69,500



63,900



64,800



65,400


managedIP5

1,400



1,300



1,200



1,100



1,100


Total Cable connections

372,300



370,900



338,000



338,900



339,000






















Numbers may not foot due to rounding. 

1 

The individual circuits connecting a customer to Wireline's central office facilities that provide voice services.

2 

The number of Wireline customers provided high-capacity data circuits via various technologies, including DSL and dedicated internet circuit technologies.

3 

The number of Wireline customers provided video services.

4 

Total residential revenue per connection is calculated by dividing total Wireline residential revenue by the average number of Wireline residential connections and by the number of months in the period.

5 

The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.

6 

Billable number of lines into a building for high-speed data services.

7 

Generally, a home or business receiving video programming counts as one video connection. In counting bulk residential or commercial connections, such as an apartment building or hotel, connections are counted based on the number of units/rooms within the building receiving service.

8 

Billable number of lines into a building for voice services.

 

TDS Telecom

Capital Expenditures (Unaudited)

Quarter Ended

3/31/2020


12/31/2019


9/30/2019


6/30/2019


3/31/2019

(Dollars in millions)










Wireline

$

39



$

98



$

61



$

55



$

29


Cable

15



26



20



15



13


Total TDS Telecom

$

54



$

124



$

81



$

70



$

42


 

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)




Three Months Ended
March 31,


2020


2019


2020
vs. 2019

(Dollars and shares in millions, except per share amounts)






Operating revenues






U.S. Cellular

$

963



$

966



TDS Telecom

240



230



4

%

All Other1

58



61



(5)

%


1,261



1,257



Operating expenses






U.S. Cellular






Expenses excluding depreciation, amortization and accretion

732



735



Depreciation, amortization and accretion

177



169



5

%

(Gain) loss on asset disposals, net

4



2



72

%

(Gain) loss on sale of business and other exit costs, net



(2)



N/M

(Gain) loss on license sales and exchanges, net



(2)



N/M


913



902



1

%

TDS Telecom






Expenses excluding depreciation, amortization and accretion

160



150



7

%

Depreciation, amortization and accretion

52



50



2

%

(Gain) loss on asset disposals, net



(7)



N/M


212



193



10

%

All Other1






Expenses excluding depreciation and amortization

58



60



(4)

%

Depreciation and amortization

6



8



(23)

%


64



68



(6)

%

Total operating expenses

1,189



1,163



2

%

Operating income (loss)






U.S. Cellular

50



64



(22)

%

TDS Telecom

28



37



(23)

%

All Other1

(6)



(7)



10

%


72



94



(23)

%

Investment and other income (expense)






Equity in earnings of unconsolidated entities

45



44



3

%

Interest and dividend income

6



9



(30)

%

Interest expense

(37)



(43)



14

%

Total investment and other income

14



10



41

%

Income before income taxes

86



104



(17)

%

Income tax expense

3



34



(89)

%

Net income

83



70



18

%

Less: Net income attributable to noncontrolling interests, net of tax

14



11



25

%

Net income attributable to TDS shareholders

$

69



$

59



17

%







Basic weighted average shares outstanding

115



114



1

%

Basic earnings per share attributable to TDS shareholders

$

0.60



$

0.52



16

%







Diluted weighted average shares outstanding

116



116



Diluted earnings per share attributable to TDS shareholders

$

0.59



$

0.50



17

%

N/M - Percentage change not meaningful.


Numbers may not foot due to rounding.



1 

Consists of TDS corporate, intercompany eliminations and all other business operations not included in the U.S. Cellular and TDS Telecom segments.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)



Three Months Ended
March 31,


2020


2019

(Dollars in millions)




Cash flows from operating activities




Net income

$

83



$

70


Add (deduct) adjustments to reconcile net income to net cash flows from operating activities




Depreciation, amortization and accretion

235



227


Bad debts expense

34



25


Stock-based compensation expense

11



13


Deferred income taxes, net

75



25


Equity in earnings of unconsolidated entities

(45)



(44)


Distributions from unconsolidated entities

25



19


(Gain) loss on asset disposals, net

4



(5)


(Gain) loss on sale of business and other exit costs, net



(2)


(Gain) loss on license sales and exchanges, net



(2)


Other operating activities



1


Changes in assets and liabilities from operations




Accounts receivable

43



28


Equipment installment plans receivable

23



(10)


Inventory

(52)



(15)


Accounts payable

87



46


Customer deposits and deferred revenues

(9)



5


Accrued taxes

(74)



9


Accrued interest

9



11


Other assets and liabilities

(82)



(74)


Net cash provided by operating activities

367



327






Cash flows from investing activities




Cash paid for additions to property, plant and equipment

(377)



(155)


Cash paid for licenses

(26)



(1)


Cash received from investments



2


Cash paid for investments

(1)



(1)


Cash received from divestitures and exchanges



31


Advance payments for license acquisitions



(135)


Net cash used in investing activities

(404)



(259)






Cash flows from financing activities




Issuance of long-term debt

50




Repayment of long-term debt

(2)



(5)


TDS Common Shares reissued for benefit plans, net of tax payments

(1)



(3)


U.S. Cellular Common Shares reissued for benefit plans, net of tax payments



(1)


Repurchase of TDS Common Shares

(6)




Repurchase of U.S. Cellular Common Shares

(21)




Dividends paid to TDS shareholders

(19)



(19)


Distributions to noncontrolling interests

(1)



(1)


Other financing activities

(3)




Net cash used in financing activities

(3)



(29)






Net increase (decrease) in cash, cash equivalents and restricted cash

(40)



39






Cash, cash equivalents and restricted cash




Beginning of period

474



927


End of period

$

434



$

966


 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


ASSETS






March 31, 2020


December 31, 2019

(Dollars in millions)




Current assets




Cash and cash equivalents

$

421



$

465


Accounts receivable, net

1,052



1,124


Inventory, net

218



169


Prepaid expenses

115



98


Income taxes receivable

111



36


Other current assets

33



29


Total current assets

1,950



1,921






Licenses

2,511



2,480






Goodwill

547



547






Other intangible assets, net

232



239






Investments in unconsolidated entities

509



488






Property, plant and equipment, net

3,595



3,527






Operating lease right-of-use assets

975



972






Other assets and deferred charges

576



607






Total assets

$

10,895



$

10,781


 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


LIABILITIES AND EQUITY






March 31, 2020


December 31, 2019

(Dollars in millions, except per share amounts)




Current liabilities




Current portion of long-term debt

$

8



$

10


Accounts payable

378



374


Customer deposits and deferred revenues

181



189


Accrued interest

19



11


Accrued taxes

38



41


Accrued compensation

77



121


Short-term operating lease liabilities

121



116


Other current liabilities

78



100


Total current liabilities

900



962






Deferred liabilities and credits




Deferred income tax liability, net

750



676


Long-term operating lease liabilities

929



931


Other deferred liabilities and credits

491



481






Long-term debt, net

2,365



2,316






Noncontrolling interests with redemption features

11



11






Equity




TDS shareholders' equity




Series A Common and Common Shares, par value $.01 per share

1



1


Capital in excess of par value

2,489



2,468


Treasury shares, at cost

(480)



(479)


Accumulated other comprehensive loss

(8)



(9)


Retained earnings

2,718



2,672


Total TDS shareholders' equity

4,720



4,653






Noncontrolling interests

729



751






Total equity

5,449



5,404






Total liabilities and equity

$

10,895



$

10,781


 

Balance Sheet Highlights

(Unaudited)




March 31, 2020


U.S.


TDS


TDS
Corporate


Intercompany


TDS


Cellular


Telecom


& Other


Eliminations


Consolidated

(Dollars in millions)










Cash and cash equivalents

$

258



$

26



$

137



$



$

421


Affiliated cash investments



488





(488)





$

258



$

514



$

137



$

(488)



$

421












Licenses, goodwill and other intangible assets

$

2,502



$

778



$

10



$



$

3,290


Investment in unconsolidated entities

469



4



46



(10)



509



$

2,971



$

782



$

56



$

(10)



$

3,799












Property, plant and equipment, net

$

2,268



$

1,222



$

105



$



$

3,595












Long-term debt, net:










Current portion

$

6



$

1



$

1



$



$

8


Non-current portion

1,503



4



858





2,365



$

1,509



$

5



$

859



$



$

2,373


 

TDS Telecom Highlights

(Unaudited)








Three Months Ended
March 31,


2020


2019


2020 vs. 2019

(Dollars in millions)






Wireline






Operating revenues






Residential

$

84



$

81



4

%

Commercial

39



43



(10)

%

Wholesale

46



46




Total service revenues

169



170



(1)

%

Equipment and product sales





(43)

%


169



171



(1)

%

Operating expenses







Cost of services

65



63



4

%

Cost of equipment and products





(46)

%

Selling, general and administrative expenses

48



47



3

%

Expenses excluding depreciation, amortization and accretion

114



110



3

%

Depreciation, amortization and accretion

32



34



(4)

%

(Gain) loss on asset disposals, net



(7)




N/M


146



136



7

%

Operating income

$

23



$

34



(32)

%








Cable







Operating revenues







Residential

$

60



$

49



20

%

Commercial

11



10



11

%


71



60



19

%

Operating expenses







Cost of services

30



26



17

%

Selling, general and administrative expenses

17



14



16

%

Expenses excluding depreciation, amortization and accretion

47



40



17

%

Depreciation, amortization and accretion

19



17



15

%

(Gain) loss on asset disposals, net





(87)

%


66



57



15

%

Operating income (loss)

$

5



$

2



N/M









Total TDS Telecom operating income

$

28



$

37



(23)

%


N/M - Percentage change not meaningful.


Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.

Financial Measures and Reconciliations

(Unaudited)

Free Cash Flow



Three Months Ended
March 31,


2020


2019

(Dollars in millions)




Cash flows from operating activities (GAAP)

$

367



$

327


Less: Cash paid for additions to property, plant and equipment

377



155


Free cash flow (Non-GAAP)1

$

(10)



$

172




1

 Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment.

 

Cision View original content:http://www.prnewswire.com/news-releases/tds-reports-first-quarter-2020-results-301050525.html

SOURCE Telephone and Data Systems, Inc.

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